A. The Plaintiff is a corporation established pursuant to Article 8 of the Act on the Promotion of Science and Technology for Food, Agriculture and Forestry to efficiently support planning, management, and evaluation of research and development projects to foster science and technology for

B. On December 21, 2012, the Plaintiff and the Defendant from December 21, 2012 to December 20, 2015, the research and development period from December 20, 2012, the Plaintiff concluded a research on “B” (hereinafter referred to as the “instant agreement”) with the Defendant and the research and development cost as a total of KRW 1,480,200 (the government-funded research and development cost is KRW 1,10,000,000, and the enterprise contributions are KRW 370,200,000).

The Convention contains the following provisions:

Article 17-2 [Procedures for Settlement of Research and Development Expenses] (1) The head of the Plaintiff shall settle the appropriateness of the execution of research and development expenses and notify the Defendant of the settlement amount of research and development expenses within three months from the

(5) Article 19 of the Regulations on the Management, etc. of National Research and Development Projects (hereinafter referred to as the "Regulations") shall apply mutatis mutandis to other matters related to settlement.

C. On January 20, 2016, the Defendant submitted a report on “B” research as the final report on research and development of the instant case to the Minister of Agriculture, Food and Rural Affairs.

On March 3, 2016, the plaintiff's head made a final evaluation of the defendant's research and development outcomes and judged that the result was poor, and notified the defendant of the result of the final evaluation.

E. Meanwhile, on March 3, 2016, the Defendant’s representative submitted the Plaintiff’s report on the actual usage of the research and development costs of KRW 493,400,000 (including KRW 370,000,000, and KRW 111,060,000 in kind of the government contributions, including KRW 111,00,00 in kind of the enterprise contributions) used from December 21, 2014 to December 20, 2015 during the research and development period, such as the business plan and the comparison of the performance results.

As a result of its review, the head of the Plaintiff's office uses the research activity expenses on August 24, 2015 as the research activity expenses.